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How are users on wsb openly discussing GME any different than huge banks with analysts saying “we rate GME as a strong buy”? Also, look at some of these hedge
by boatsie 6y ago
How are users on wsb openly discussing GME any different than huge banks with analysts saying “we rate GME as a strong buy”? Also, look at some of these hedge funds and their leverage—-a $3B fund with 10x leverage is going to be able to “manipulate” a stock price with big orders in almost any way they choose, and they do it in secret!
Now I don’t personally think GME is worth $300/share, but the people buying it think they will be able to sell it for more, and that is their right. They aren’t being “tricked” with deliberate misinformation, there are indeed a lot of shorts still out there that will eventually need to cover.
- r00tanon 6y agoThe combination of unique trading features offered as part of Robinhood's business model combined with the social media and relatively inexperienced investors acting in concert is prone to unintended consequences for both the business as well as the investor. That was my main point. Here's a more comprehensive article on the subject. https://www.cnbc.com/2021/01/28/gamestop-now-called-a-pump-and-dump-scheme-what-you-need-to-know.html#:~:text=Save%20and%20Invest-,GameStop%20is%20being%20called%20a%20'pump%20and%20dump'%20scheme%E2%80%94,what%20you%20need%20to%20know&text=People%20walk%20by%20a%20GameStop,2021%20in%20New%20York%20City.&text=Typically%20a%20pump%20and%20dump,positive%2C%20but%20fake%2C%20information https://www.cnbc.com/2021/01/28/gamestop-now-called-a-pump-a....